Ex-Terraform Labs CFO Han Chang-joon Extradited to South Korea Amid Frauds Allegations
Summary:
Former Terraform Labs CFO Han Chang-joon was extradited from Montenegro to South Korea to face charges related to fraud. He and Terraform's former CEO Do Kwon were arrested previously in Montenegro for attempting to board a private plane to Dubai using forged Costa Rican passports. Despite calls for extradition, Kwon remains in Montenegro and may face up to 40 years in prison. Meanwhile, Terraform Labs is going through bankruptcy proceedings in the United States and is the subject of an SEC complaint.
Han Chang-joon, the prior Terraform Labs CFO, was sent from Montenegro back to South Korea on February 5, as revealed by Montenegro police via a government website. Although the police statement only referred to him as J.C.H, an anonymous police source verified his identity to Reuters. On March 23, Han and the previous Terraform CEO Do Kwon, were taken into custody at the capital airport of Montenegro, Podgorica, as they attempted fraudulent usage of Costa Rican passports to board a private plane to Dubai. The police statement from Montenegro confirmed that Han was handed over to South Korean judicial and police authorities by NCB Interpol Podgorica officers and the Special Police Unit to face trials for multiple fraud-related criminal offenses. Strangely, Han is reportedly facing a life sentence in South Korea, a harsher penalty than what Kwon may receive, per a South Korean newspaper. KBS World has reported that Kwon could serve up to 40 years. Han and Kwon have already served a four-month sentence in Montenegro for falsification of travel documents.
Despite an Interpol "Red Notice" for his arrest issued by South Korea, Kwon had established a business in Serbia where they both were residing. Kwon was indicted in relation to the downfall of Terraform Labs' stablecoin ecosystem in May 2022. Their detainment sparked competing calls for Kwon's extradition, who is still in Montenegro. After a series of legal gambits, in December, a Montenegro court determined to extradite Kwon to the United States, where he is facing eight charges including securities fraud, commodities fraud, wire fraud and conspiracy to defraud and undertaking in market manipulation. The U.S. Securities and Exchange Commission has allied with Kwon’s appeal to postpone proceedings in its complaint against Terraform Labs and Kwon until his arrival. In November, the agency unsuccessfully sought a summary judgment in the case. On January 21, Terraform Labs declared bankruptcy in the US. In his fraud trial in South Korea, Terraform Labs co-founder Shin Hyun-Seong, aka Daniel Shin, accused the downfall of Terraform to "external attacks implemented by Do-hyung Kwon [Do Kwon].
Published At
2/5/2024 10:56:50 PM
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